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With the expansion of coverage of healthcare in 2010 through the Affordable Care Act, much changed in our efforts to insure the uninsured.

Citing compliance concerns, specifically duplicate discounts, several drug manufacturers took steps to reduce contract pharmacy access to 340B-priced drugs. The move has caused an outcry from covered entities, many of which depend on contract pharmacies to expand patient access, particularly in rural areas.

Alas, hospitals and pharmacies are abusing a federal program meant to help low-income patients. New research from consulting firm Berkeley Research Group reports that these bad actors are lining their own pockets with discounts on prescription drugs at the expense of millions of disadvantaged American patients.

With the election behind us, I’m glad that our elected leaders can stop focusing on getting elected and start focusing on policy that effects the lives of everyday Americans. Earlier this year, Congressman Tom O’Halleran, along with several of his colleagues, sent a letter to Secretary Azar of Health and Human Services regarding the 340b program.

In the 340B program, drug manufacturers provide medications at steep discounts, with the intent of those discounts being passed along to the patient. But a clear lack of transparency has resulted in 340B hospitals and contract chain pharmacies like our local CVS, Walgreens, and Walmart to use funds for their own benefit.

AIR340B’s comments and recommendations are chiefly concerned with identifying areas in which the program can be improved to achieve its purpose – to increase access to discounted medicines to safety-net providers who treat needy patients. This includes clearly defining the eligibility of a 340B patient and addressing 340B-driven hospital consolidation, restricting contract pharmacy arrangements, and establishing clear reporting requirements for disproportionate share (DSH) hospitals.

Federally qualified health centers help Merced patients with medication costs

WASHINGTON – The Alliance for Integrity and Reform of 340B (AIR340B) released an updated report, “The Impact of Growth in 340B Contract Pharmacy Arrangements – Six Years Later,” which highlights the increasing concerns being raised regarding the role contract pharmacies play in the 340B Drug Discount Program.